Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

IGCSE FLASH CARDS > Business 3 > Flashcards

Business 3 Flashcards

(82 cards)

Start Studying
1
Q

Define marketing

A

The combination of product, price, promotion and place that determines how a firm markets to its customers and potential customers (4 P´s)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is the role of marketing

A

Identifying customer needs
Satisfying customer needs
Maintaining customer loyalty
Building customer relationships

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

State the benefits of marketing

A

Business survival
Customer loyalty/relationships
Increase profitability
Increase or maintain market share

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Why customer/consumer spending patterns may change

A

Consumer tastes and fashion change
Change in technology
Change in income
Ageing population

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Why some markets have become more
competitive

A

Globalisation
Transportation improvements
Internet/E-commerce

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Define first mover advantage

A

The benefits a firm gains, such as brand loyalty, from being the first to launch a new product or service in a market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

How businesses can respond to changing
spending patterns and increased competition

A

Keep improving its existing product
Bring out new products to keep customers interest
Keep costs low to maintain competitiveness

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Define niche marketing

A

Promoting and selling a product to a small, clearly identifiable segment of a large mrket

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Define mass market

A

Where there is a very large number of sales of a product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Define B2B

A

Is the process of one business selling to another

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Benefits and limitations of niche market

A

B: Products are specialised and unique, higher profit margin, builds up specialised skills
L: High average costs, do not benfit from EOS, low sales volume

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Benefits and limitations of mass market

A

B: Low avergae costs, greater affordability, high sales volume, benefit from EOS
L: Products are less unique, highly competitive markets, lower profit margin

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Define market segment

A

A clearly defined section of a larger market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

How markets can be segmented

A

According to age
Socio-economic grouping
Location
Gender

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Why market segmentation is undertaken

A

To have a clearer target of the customers that are likely to buy your products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Potential benefits of segmentation to business

A

Products meet different needs of different groups of consumers
Less expensive and wasteful
Loyalty needs are being met, can lead to repeat purchases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Potential limitations of segmentation to business

A

Difficult to identify a segment
A segment may be small and unprofitable
Not everyone within a segment will behave in the same way

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Define market research

A

The process of collecting and interpreting data about customers, the market and competitors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

The role of market research

A

Future needs and wants of customers are known
Understand cosumer behaviour
Identify competitors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Define market orientation

A

Business which carries out market research to find out consumer wants before a product is developed and produced

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Tools of market orientation

A

Market research
Market testing
Customer focus

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

State the market research methods

A

Primary research
Secondary research

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Define primary research

A

Information collected first-hand, that did not already exist

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Define secondary research

A

Information that has already been collected and is available for use by others

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Benefits and limitations of primary research
B:The info is focused on the needs of the business, in-depth info, Up-to-date and specific L:No accurate answers-bias, expensive and time-consuming, may need a specialist market research agency
26
Benefits and limitations of secondary research
B: Already available, quicker/cheaoper to collect, suitable for small businesses L: Difficult to analyse, lack of relevance, can be fake, info may be out-of-date
27
Methods of primary research
Postal questionnaire Online survey Interviews Focus groups
28
Methods of secondary research external
Online Accessing government sources Paying for commercial market research reports
29
Methods of secondary research internal
Sales employees Customers records Finance department
30
Role of sampling
Primary market research is conducted with a small representative sample of the market as a whole
31
The need for sampling
In general, the larger the sample size, the more likely it is that results of market research activities will reflect the market as a whole
32
Methods of sampling
Quota Random Stratified Cluster
33
Define cluster sampling
The method draws a sample from a single, specifc geographic area
34
Define random sampling
When people are selected at random as a source of info for market reaserch
35
Define quota sampling
When people are selected on the basis of certain characteristics as a source of info for market research
36
Define stratifed sampling
When the business fisrt selects the market segment it wants to research
37
Factors influencing the accuracy of market research data
How careful the sample was drawn up The sample selected size Who carried out the research The wording of the questions
38
Define marketing mix
Used to describe all the activities which go into marketing a product or service. These activities are often summarized as the four P´s
39
Define product
The part of the mix that the customers will use. Developing products or services that customers actually want is vital to marketing sucess
40
The limitations and benefits of developing new products
L:Time cosuming, investment in research and development, damage the brand if the product fails B:Spread fixed costs, USP the business will be first with the new product, business can expand and diversification
41
Define USP
A feature of the product, its image, its price etc, that is different from and superior to the competition
42
State the importance of brand image and the impact on sales and customer loyalty
Higher prices than unbranded products Encourages customers to keep buying it Unique packeging Always the same quality
43
Define brand image
An image or identity given to a product which gives it a personality of its own and distingushes it from its competitors brand
44
State the role of packeging
The physical container or wrapping for a product. It is also used for promotion and selling appeal
45
Define product life cycle
A graph showing the average stages a product goes through
46
State the 5 stages a product will pass through
Development Introduction Growth Maturty Decline
47
What is meant by extension strategies, at product life cycle
A way of keeping a product at the maturity stage of the life cycle and extending the cycle
48
Define price
A variety of factors will influence the price of a product, such as costs of production and target market. Firms will aim to maximise revenue by adopting a particular pricing strategy
49
Pricing methods (5)
Cost plus Competitive Penetration Skimming Promotional
50
Define cost plus price
The cost of manufacturing the product plus a profit mark-up
51
Define competitive pricing
When the product is priced in line with/just below competitors prices to try to capture more of the market
52
Define penetration pricing
A producct is launched into an established and competitive market at a low price in an attempt to attract customers, the firm usually increases the price once it
53
Define skimming pricing
Where a high price is set for a new product on the market
54
Define promotional pricing
When a product os sold at a very low price for a short period of time
55
Define price elasticity
A measure of how sensitive (responsive) demand for a product is to changes in its price
56
Difference between price elastic and price inelastic demand
Price elastic: Demand for a product is responsive to changes in its price. eg. Flights Price inelastic: Demand for a product is unresponsive to a change in price. eg.cigarettes
57
Define place
The way in which a product is distributed. The product must get to customers at the right time, in the right quantities, in a good condition. Place IS NOT about the actual physical location
58
Define distribution channel
The method used by a business to get its products to its consumers
59
State the different channels of distribution of places
Wholesalers Retailers Direct to consumers
60
Define wholesalers
Buy in large quantities from manufacturers and then sell these products in smaller quantities to retailers
61
Define retailers
When producer sells the product via retailers to the end consumer
62
Define direct distribution
When the producer sells the product directly to the end consumer. No intermediaries are used
63
Advantages and disadvantages of wholesalers channels
A: Can give advise to retailers about what is selling well D:More expensive and takes longer for fresh produce
64
Advantages and disadvantages of retailers channels
A: Sells large quantities and reduce distribution costs D: Price is often higher and no direct contact with customers
65
Advantages and disadvantages of direct to customer channel
A: Distribution channel is very small and prices are low D: Impractical for most products and can be expenssive to send the products
66
Define promotion
Communication with customers and potential cutomers., through promotion a business might aim to communicate products etc
67
State the aims of promotion
Enhance business image/brand Compete Support new products Increase sales revenue Provide info
68
State the different forms of promotion
advertising, sales promotion
69
What is informative promotion
Info about the product
70
What is persuasive promotion
The advertisement that makes you want to buy the product (celebrity endorsment)
71
What is celebrity endorsement
When a celebrity uses the product and makes the fans buy the product
72
If a business spend the marketing budget effectively is called .......
Cost-effectiveness
73
Define E-comerce
Trade undertaken using electronic means, usually the internet but increasignly mobile technology
74
State the opportunities and threats of e-commerce to business
O: Webs offer a direct and cheap promotional method for business, easy to purchase online, easy to use and wesite, dynamic pricing techniques are often used T: Too much competition, lack of face-to-face contact with costumers, efficient stock control is essintial
75
State the opportunities and threats of e-commerce to consumers
O: Debit and credit cards allowed, worldwide shopping, competition drives prices down T: Poor connections or technical difficulties, idintity theft/fraudulent use of credit cards and products can not be tried before purchase
76
State the use of internet/social media networks for promotion
Sponsorship Price reductions Advertising-direct marketing "buy one, get one free"
77
State the impact of legal controls related to marketing
Misleading promotion Faulty Dangerous goods
78
The opportunities of entering new foreign markets
Generates EOS Growth potential of new markets in other countries
79
Define EOS
Operating on a larger scale can reduces costs per unit
80
Problems of entering foreign markets
Cultural differences and lack of knowledge
81
State the methods to overcome problems of entering foreign markets
Joint ventures Licensing
82
Define Joint ventures
Working with another business when entering a new market

IGCSE FLASH CARDS (19 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions